If a business put a shed up or bought land would the shed and the land then belong to the business?

[FarmerStu79]

Posting in behalf of my partner. He’s worked on his mother’s farm for 23+ years without any sort of livable income.

His mum made him a partner in the business 3/4 years ago (51% ownership to him 49% to her) and subsequently they built a new shed on the farm.

His mother died last year and the business, stock, plant machinery is my partners but just a quarter of the land is his.

Around 20 years ago, the business bought a 50 acre piece of land. My partner has sought legal advice and has been told that because the modern farm buildings were erected by the business that they belong to the business so they belong to him as he’s the only remaining partner.

I was just wondering if there is a similar scenario with the land seeing as though the business bought it (my partner’s mum inheirited the farm from her husband when he died 40 years ago and we’re working on the very hopeful assumption that the estate she was left with - the old stone barns, buildings and the original land that came with the farm is all that should be quartered)

Could anyone shed any light?

 

[Chris F]

@Ruth@OrattoLaw do you know the answer to this?

 

[Ruth@OrattoLaw]

If the business bought the 50 acres and owns it, then I would have thought it would belong to the business as one of its assets, and if your partner is the only remaining business partner, then it should form part of his inherited estate. Was there a Will, and are there likely to be any challenges to the Will, or any dispute over who gets what?

Who owns the other 3/4s of the land?

 

[FarmerStu79]

If the business bought the 50 acres and owns it, then I would have thought it would belong to the business as one of its assets, and if your partner is the only remaining business partner, then it should form part of his inherited estate. Was there a Will, and are there likely to be any challenges to the Will, or any dispute over who gets what?

Who owns the other 3/4s of the land?

Thank you for your response. Yes, there was a will. She specified that all of the land including the land that the business bought was to be quartered as well as the modern farm buildings.

The other 3/4 are split between his brother and nephew (whom he doesn’t get on with, his brother has a criminal record for GBH against my partner but is an executor of the will) and his sister whom he gets a long with and who is more than happy for him to farm her quarter, she’s also an executor.

There are signs that the brother and nephew are going to try and make life difficult. None of them rely on the farm buildings or the land to make a living, just my partner. The only beneficiary who has grounds to contest/challenge the will is my partner.

 

[FarmerStu79]

I will also add that my partner inherieted a sum of money from his deceased grandfather and put £10,000 of that towards the land that the business bought. He thinks he won’t be able to find a paper trail to prove this but there must be one somewhere.

 

[Stevethemeat]

In this situation I would advise you to take proper legal advise
It will turn messy both in business life personal life and family life so getting it right will save you a whole lot of greif all round

 

[Ruth@OrattoLaw]

This really does need an experienced probate solicitor to look at - the wording in the Will is crucial. If you would like, I could put you in contact with a contested probate solicitor who would be happy to have a free initial chat with you/your partner - just send me a private message.

 

[yellow belly]

Get the best lawyer you can to argue your case and the law
The executors legally ensure the will is carried out not make judgement on its interpretation
The rent on 32 acres over 30 years plus the capital value pays a lot of fees

 

[Goweresque]

Also get good legal advice on the dissolving of the partnership. I don't think its the case that the executors of the deceased partner get to dissolve the partnership, if that needs to happen, the surviving partner should be the one to do that, especially as the surviving partner is the majority partner too.

 

[Fallowfield]

Posting in behalf of my partner. He’s worked on his mother’s farm for 23+ years without any sort of livable income.

His mum made him a partner in the business 3/4 years ago (51% ownership to him 49% to her) and subsequently they built a new shed on the farm.

His mother died last year and the business, stock, plant machinery is my partners but just a quarter of the land is his.

Around 20 years ago, the business bought a 50 acre piece of land. My partner has sought legal advice and has been told that because the modern farm buildings were erected by the business that they belong to the business so they belong to him as he’s the only remaining partner.

I was just wondering if there is a similar scenario with the land seeing as though the business bought it (my partner’s mum inheirited the farm from her husband when he died 40 years ago and we’re working on the very hopeful assumption that the estate she was left with - the old stone barns, buildings and the original land that came with the farm is all that should be quartered)

Could anyone shed any light?

'the business bought a 50 acre piece of land'

What do you mean by 'the business'?

 

[FarmerStu79]

'the business bought a 50 acre piece of land'

What do you mean by 'the business'?

All money made from the farm goes into the business farm account, always has done always will do. The money from that account bought the 50 acres. Hope this makes it a but clearer.

 

[Werzle]

Expect 10yrs of legal wrangling and large legal bills.

 

[Goweresque]

All money made from the farm goes into the business farm account, always has done always will do. The money from that account bought the 50 acres. Hope this makes it a but clearer.

Is the land listed in the partnership accounts under fixed assets?

 

[lim x]

Is it possible that your partners mum made him a partner in the business but not the property and the property is hers under her capital account?

 

[Will Blackburn]

The land would have to have been paid for with personal drawings for that to be the case. Saying things cannot alter what has been done.

 

[Dry Rot]

Can't make any useful contribution to this thread except to say I've a nagging memory from the dark recesses of my mind that "That which is affixed to the land becomes part of the land". Whether that is relevant or not to this situation I will leave to wiser heads than mine to decide.

 

[Fallowfield]

Can't make any useful contribution to this thread except to say I've a nagging memory from the dark recesses of my mind that "That which is affixed to the land becomes part of the land". Whether that is relevant or not to this situation I will leave to wiser heads than mine to decide.

That's certainly the case in Scotland. Don't know about England.

 

[Fallowfield]

All money made from the farm goes into the business farm account, always has done always will do. The money from that account bought the 50 acres. Hope this makes it a but clearer.

Not really. The title deeds will stipulate who the owner is. I suspect it will be the mother as an individual, but you'd have to check.

 

[Goweresque]

Not really. The title deeds will stipulate who the owner is. I suspect it will be the mother as an individual, but you'd have to check.

Regardless of whose name is on the deeds, if the OP's partner can show that the partnership paid the off the mortgage on the 50 acres in entirely over the years, would that not give him a cast iron claim against the deceased's estate for his 51% share? If the deceased put her name on the deeds but got the partnership to pay (ie only paying 49% herself) would that not be actionable now, to recover the share his profits paid for?

 

[Fallowfield]

Regardless of whose name is on the deeds, if the OP's partner can show that the partnership paid the off the mortgage on the 50 acres in entirely over the years, would that not give him a cast iron claim against the deceased's estate for his 51% share? If the deceased put her name on the deeds but got the partnership to pay (ie only paying 49% herself) would that not be actionable now, to recover the share his profits paid for?

What partnership?

It appears that for years there was only one partner.

Without being appraised of all the relevant facts it's all just pointless speculation that isn't going to resolve anything.

The people involved will have to consult a solicitor.